appointed, shall be appointed for the remainder of such term; and (2) the terms of office of the members first taking office after the date of enactment of this Act shall expire at the end of one, two, three, four, and five years, respectively, after such date. The members of the National Board shall receive compensation at the rate of $25 per day for actual time devoted to the work of the National Board (not to exceed sixty days in any one fiscal year), shall be reimbursed for necessary travel expenses, and shall be paid a per diem allowance for other necessary expenses in accordance with the provisions of the Subsistence Expense Act of 1926, as amended. The National Board shall have authority to invite other Federal officials to serve as consultants or advisers and such Federal officials while so serving shall receive no additional compensation, but shall be reimbursed for any necessary expenses incurred while engaged in the work of the National Board. The United States Commissioner of Education shall serve as Secretary of the National Board and as its administrative officer, and through the United States Office of Education shall administer the several programs authorized in this Act.

(b) For services and other expenses necessary to the administration of this Act, and for the making of necessary surveys to determine the educational needs of all children within each State and other studies in connection with the best utilization of the grants authorized in this Act, there is hereby authorized to be appropriated for each fiscal year an amount not to exceed one-half of 1 per centum of the total amount authorized to be appropriated for each fiscal year under the provisions of section 201 of this Act. Any of the funds appropriated under the authorization contained in this subsection may be allocated by the National Board to State departments of education for surveys or other studies pertinent to the best uses of the funds received under this Act. Such allocations shall be made by joint agreement between the National Board and the State authority. The amounts thus allocated shall be certified to the Secretary of the Treasury by the National Board, and shall thereupon be paid to the State authority for disbursement to the cooperating State department of education. Suitable provision for audits, reports, and repayment to the United States of amounts unexpended, lost, or misapplied shall be incorporated into the joint agreement.

(c) It shall be the duty of the National Board to formulate policies for the allocation of funds among the States as authorized under titles II, III, and IV of this Act, in the manner prescribed under each such title, and to review the operation of the programs herein provided. The plan of the National Board for the allocation and apportionment of funds under any provision of this Act shall be published by the National Board within thirty days after the funds authorized under such provision shall have been made available.

(d) In each State which informs the National Board under section 3 (a) (4) of this Act that it is prohibited from disbursing to nonpublic schools funds appropriated pursuant to this Act the National Board shall appoint, from among not less than three persons nominated by the Governor of such State, a trustee who shall have the duty of receiving and disbursing the portion of the funds allocable to such State which the National Board determines should be disbursed to nonpublic schools. In making any such determination the Board shall take into consideration the extent to which the burden of the educational needs of the State are borne by nonpublic schools. A trustee appointed pursuant to this subsection shall receive such compensation as the Board may direct, and shall be reimbursed for any necessary expenses incurred in the performance of his functions.

(e) The National Board shall cause an audit to be made of the expenditure of funds under this Act by each State authority. If the National Board after review and reasonble opportunity for hearing finds that any portion of such funds has been expended by a State in a manner contrary to the provisions of this Act, or has othrwise been lost or unlawfully used, an amount equal to such portion shall, after reasonable notice, be withheld from the next ensuing payment to such State unless such amount is replaced by such State and expended for the purposes originally intended. Upon certification by the National Board that such State has failed to replace funds received under this Act which are lost or unlawfully used or expended in a manner contrary to the provisions of this Act or has failed to make required reports with reasonable promptness the Secretary of the Treasury shall suspend payments under this Act to such State. Upon certification of the National Board that such State has rectified such failure, the Secre-

tary of the Treasury shall transmit to such State the amounts so suspended. The sums allotted to any State under this Act shall, when certified for payment, remain available for not to exceed one fiscal year after the fiscal year for which such certification was made.

(f) In providing for the audit referred to in subsection (e), with respect to funds allotted under this Act to the Virgin Islands, American Samoa, and Guam, the National Board is authorized to utilize the services of employees of any Federal department or agency by agreement with the head of such department or agency.

(g) The National Board shall publish annually a full and complete report showing the extent to which educational opportunities in the United States have been equalized through the provisions of this Act. Each such report shall include a summary and analysis of the legislative and administrative provisions adopted by each State for the expenditure of funds received under this Act, together with statistical information showing the accomplishments of the respective States through the expenditure of such funds. In all such reports relating to the status of education in States where separate educational facilities are maintained by law for any minority group, data related to such separate educational facilities shall be separately reported. The National Board shall also make an annual report in writing to the Congress, giving an account of all money received and allocated by it under this Act.

(h) The National Board is authorized to make such rules and regulations in conformity with the provisions of this Act as may be necessary to facilitate its administration.

STATE ACCEPTANCE PROVISIONS

SEC. 3. (a) In order to qualify for receiving funds appropriated under this Act, a State

(1) through its legislature shall (A) accept the provisions of this Act and provide for the administration of funds to be received; (B) provide that the State treasurer, or corresponding official in the State, shall serve as trustee for the funds paid to the State under this Act; (C) establish or designate a State educational authority which shall represent the State in the administration of funds received; (D) provide for an audit by the State authority of the expenditure of funds received and apportioned to local school jurisdictions, or other educational agencies as authorized under this Act; (E) provide that the State authority shall make reports to the National Board with respect to the plans and purposes of expenditures of funds received under this Act and of the program of education, on forms to be provided by the National Board; (F) provide, if in such State separate public schools are maintained for separate races, for a just and equitable apportionment of such funds for the benefit of public schools maintained for minority races, without reduction of the proportion of State and local moneys expended for educational purposes during the fiscal year ended in 194for public schools for, minority races; and (G) provide that funds received under this Act shall be made available in every part of the State and to every State-approved educational agency, in need thereof without discrimination or prejudice in regard to race, creed, or status of any person or agency in the State authorized under this Act to receive such funds: Provided, That in any State in which the legislature has not taken the action specified in this paragraph the chief executive of such State may, until such action has been taken or until six months after the adjournment of the first regular session of the legislature in such State following the date of enactment of this Act, whichever first occurs, take such action for such period as is required by this Act to be taken by legislative enactment;

(2) either through its legislature, or through the State authority if the legislature so directs, provide for distribution and administration of the funds received under this Act in such manner as to comply with the provisions of this Act;

(3) shall transmit through its State authority to the National Board official notice of acceptance and certified copies of the legislative enactments and the official regulations that may be issued by the State authority in connection with such funds. Any amendments to such enactments and revisions of official regulations shall in like manner be transmitted to the National Board;

(4) shall inform the National Board whether or not it is prohibited by law or otherwise from distributing such funds to nonpublic schools.

(b) The plans required of any State authority under any provision of this Act shall be published by the State authority receiving such funds within thirty days after such funds shall have been made available.

STATES NOT TO REDUCE APPROPRIATIONS

SEO. 4. The funds appropriated under the authorization of any provision of this Act shall be allotted only to those States which, during the fiscal year preceding the fiscal year for which the apportionment is made, have provided from State revenues for all public elementary and public secondary-school purposes not less than either the total amount, or the amount per pupil in average daily attendance actually spent for such purposes in the fiscal year ended June 30, 1942. Neither the State nor any subdivision or agency thereof which avails itself of any benefits under this Act shall pay salaries less than the monthly salary being paid on the date of enactment of this Act for any stated type or form of teaching, except that the State authority may, with the approval of the National Board, grant exceptions to this provision to meet emergencies which may arise within a State.

STATE ADMINISTRATIVE EXPENSES

SEC. 5. A State may use not to exceed 1 per centum of the funds received by it under this Act to assist in paying the expenses of the State department of education necessary for the efficient administration of the funds received under this Act: Provided, That such work shall include cooperation with the United States Office of Education in furnishing the Commissioner of Education such factual information as may be useful in the compilation of essential educational data, and assistance in the preparation of plans for the location and construction of buildings for educational purposes.

BUILDINGS FOR EDUCATIONAL PURPOSES

SEC. 6. Hereafter no funds authorized or appropriated under any Act of Congress shall be paid (1) to any State or subdivision thereof for the construction or equipment of buildings for educational purposes until the State authority shall have approved and shall have transmitted to the National Board plans which will provide that the proposed building or buildings shall be located and constructed to meet the educationa needs of the community, or (2) to any nonpublic educational agency for such purposes unless such agency shall have formulated and submitted to the National Board its plans for meeting such educational needs. The National Board shall transmit plans submitted to it for the location and construction of buildings for educational purposes to the Federal agency authorized to disburse or approve the disbursement of funds for such purposes.

SEC. 7. As used in this Act

DEFINITIONS

(a) The term "State" means the several States, the District of Columbia, Alaska, Hawaii, Puerto Rico, American Samoa, the Virgin Islands, and Guam. (b) The term "legislature" means the State or Territorial legislature or other comparable body, except that in the District of Columbia it shall mean the Board of Commissioners and in American Samoa and the Virgin Islands it shall mean the Governor.

(c) The term "State authority" means the State educational authority created pursuant to clause (c) of paragraph (1) of section 3.

(d) The term "nonpublic school" means any school not operated for profit which complies with the minimum educational requirements of the State.

(e) The term "minority race" or "minority racial group" means any race or racial group that constitutes a minority of the population of the continental United States.

(f) A "just and equitable" apportionment, allotment, or distribution of funds provided under this Act for the benefit of a minority racial group in a State which maintains by law separate educational facilities for such minority racial group, means any plan of apportionment, allotment, or distribution which results in the expenditure, for the benefit of such minority racial group, of a proportion of said funds not less than the proportion that each such minority racial group in such State bears to the total population of that State.

SEPARABILITY

SEC. 8. If any provision of this Act or the application thereof to any State, person, or circumstance is held invalid, the remainder of the Act, and the application of such provisions to other States, persons, or circumstances shall not be affected thereby.

TITLE II-FUNDS TO RAISE SUBSTANDARD EDUCATIONAL CONDITIONS

APPROPRIATION

SEC. 201. To assist the States in more adequately financing their systems of public education by supplementing currently available State and local funds for educational purposes, and to equalize educational opportunities among all children in public and nonpublic schools; to eradicate illiteracy; and to promote the national security and the general welfare through the development of education, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1946, and for each fiscal year thereafter, $300,000,000, to be apportioned among the States in the manner hereinafter provided.

APPORTIONMENT AMONG STATES

SEC. 202. It shall be the duty of the National Board to determine the relative need for funds authorized under this title and to allocate the funds among the several States in accordance with their findings. In determining such need the National Board shall take into account the findings and recommendations of the Secretary of the Treasury relative to the ability of each of the several States and its local subdivisions to provide adequate educational facilities, the nature and extent of educational inequalities and relative substandard conditions afforded to children in the several States, especially in the rural areas. and the findings of the Director of the Census as to the estimated number of persons in each State who have attained the age of five but who have not attained the age of twenty-one. The policy of the National Board shall at all times provide that in States where separate public schools are maintained for separate races, that a just and equitable apportionment of such funds for the benefit of public schools be maintained for minority races, without reduction of the proportion of State and local moneys expended for educational purposes during the last fiscal year prior to the enactment of this Act, for publis schools for minority races.

AVAILABILITY OF APPROPRIATIONS

SEC. 203. The funds paid to a State or to a trustee from the funds authorized to be appropriated under section 201 of this Act shall be available for disbursement by the State Authority to local public school jurisdictions or other State public educational agencies or by a trustee to other educational agencies for the payment of current educational expenditures for any or all of the following purposes: (1) To eradicate illiteracy; (2) to keep schools open for a term of not less than nine months, or to make provisions for the education of pupils affected by closed schools; (3) to reduce overcrowded classes by the employment of additional teachers; (4) to make possible the payment of adequate salaries of teachers in public elementary schools (which may include kindergartens and nursery schools) and public junior and senior high schools and junior colleges: Provided, That not less than 75 per centum of such funds shall be made to supplement the appropriations currently made by such State for payment of salaries of teachers: And provided further, That none of the funds paid to a trustee from funds authorized to be appropriated under section 201 of this Act shall be used for the payment of salaries of teachers.

TITLE III-FUNDS TO ENABLE STATES TO RENDER SPECIAL EDUCATIONAL SERVICES

APPROPRIATION

SEC. 301. To promote the health, welfare, and safety of school children by providing for current expenditures for educational facilities and services, such as transportation for educational purposes, library facilities, textbooks and other reading materials, visual aids and other instructional materials, school health

programs and facilities, and other necessary educational projects, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1946, and for each fiscal year thereafter, $100,000,000, to be apportioned among the States in the manner hereinafter provided.

APPORTIONMENT AMONG STATES

SEC. 302. The funds authorized to be appropriated under section 301 of this Act shall be allocated among the several States by the National Board as follows: Fifty per centum of such funds shall be allocated among the States on the basis of the total population of each State as estimated by the Bureau of the Census, and 50 per centum of such funds shall be allocated by the methods of allocation provided, and in accordance with the policy expressed, under section 202 of this Act.

AVAILABILITY OF APPROPRIATIONS

SEC. 303. The funds paid to a State or to a trustee appointed pursuant to section 2 (d) from the funds authorized to be appropriated under section 301 of this Act shall be available for disbursement by the State authority or by such trustee to any educational agency in such State, whether public or nonpublic. Such funds shall be used for current expenditures for any of the purposes specified in section 301 of this Act.

TITLE IV-ASSISTANCE TO NEEDY STUDENTS

APPROPRIATION

SEC. 401. For the purpose of providing needy persons between the ages of fourteen and twenty, inclusive, means and assistance to enable them to continue their education, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1946, and for each fiscal year thereafter, $150,000,000, to be apportioned among the States in the manner hereinafter provided.

APPORTION MENT AMONG STATES

SEC. 402. (a) The funds authorized to be appropriated under section 401 of this Act shall be allocated among the several States on the basis of the total number of persons in each of such States between the ages of fourteen and twenty, inclusive, as estimated by the Bureau of the Census.

AVAILABILITY OF APPROPRIATIONS

SEC. 403. The funds paid to a State or to a trustee appointed pursuant to section 2 (d) from the funds authorized to be appropriated under section 401 of this Act shall be available for disbursement by the State authority or by such trustee (1) to persons who have attained the age of sixteen and who have not attained the age of twenty-one, who are in regular attendance at an educational institution, whether public or nonpublic, or at a training center which complies with the standards prescribed under the Act of August 16,1937 (50 Stat. 664), and (2) to the parents of needy persons who have attained the age of fourteen but who have not attained the age of sixteen and who are in regular attendance at any such institution or center, for the purpose of enabling and assisting such persons to continue their education.

(b) The State authority shall promulgate and publish a plan for the distribution of the funds provided under this title, setting forth the method of determining need in the case of persons to be benefited under the provisions of this title, and for the administration of the program adopted for the use of such funds. The disbursements made under such plan shall at all times be uniformly applicable, under similar conditions, to all persons who have attained the age of fourteen and who have not attained the age of twenty-one, who qualify for such aid, without discrimination on account of race or creed. Benefits under this title may be afforded in the form of scholarships, stipends, or compensation for work performed for public or nonprofit agencies: Provided, That the combined period of education and employment of persons receiving this aid shall not exceed eight hours for any one day or forty-eight hours for any one week.

Senator WALSH. We are ready to hear the first witness.